Measuring The Success Of Your Demand Generation Firm: Key Metrics To Consider

Demand-generation firms are becoming popular as more businesses are rethinking their marketing approach. They are using demand generation funnels, now replacing sales and marketing funnels. In addition, companies that focus on finding leads are currently working to build demand. Although demand generation firms are doing a good job, what metric can they use to measure their success?

• Funnel conversion rates

Marketers in demand-generation firms mainly concentrate on the initial number of marketing-qualified leads that can be generated through a campaign. Although this is a vital metric, it ignores the main funnel touchpoints and metrics of how an organization provides content. Other things include nurturing relationships and passing qualified leads to sales. 

For the firm to measure conversion, metrics must consist of the percentage of MQLs converting to SQLs and SQLs turning to meetings. Then the meeting percentage trunks into customers and many more. The insights received will inform the firm of the weaknesses within the funnel and areas that require improvement.

• Closing percentages

The closing percentage is a classic sales metric that can show insight into more than the performance. This effectively shows how the firm converts, qualifies and nurtures the marketing-qualified leads. The closing percentages also reveal insight into weakness in demand generation chances for leads to drop in the middle of the funnel. As an organization, it’s vital to get opportunities for continued engagement, including referrals, upsells and existing client feedback. They can do this by hiring a BTL advertising agency for ad developments and promotions.

• Cost per acquisition

The acquisition cost is essential for demand-generation firm marketing but can also define the business’s success. The company can’t achieve profitability if the price of consumer acquisition exceeds consumer lifetime value. To measure and track, divide all costs spent on getting the client and the number consumers acquired in the period money was spent. Tracking this metric will help the firm refine how they do things, including working on challenges around offering quality and quantity in demand generation.

• Conversion to MQLs

A significant lead is qualified for nurturing and retargeting based on meeting predefined criteria for lead generation. In any demand generation program, the standards for an MQL need to be informed by closed-loop analytics based on total funnel intelligence. Measuring the lead percentage that turns into MQLs will show how effective the firm is in targeting the right prospects on the proper channels.

• Average deal size

This refers to the average dollar value of each new, closed customer account that finishes the sales cycle. Depending on the customer’s products and services, it may or may not reflect their lifetime value. The metric offers value in new and mature demand marketing scenarios allowing the firm to project revenue and manage pipeline health. The average deal size gives insights into the company’s type of sales cycle. Higher volumes with smaller deal sizes make a more transactional sales cycle. Measuring this by buyer persona will also show directives into accounts type the firm needs to target and prioritize.

Demand generation firms know the importance of measuring their marketing efforts. But achieving it requires more than just measuring the return on investment. Although there are many barriers to achieving this, a firm that adopts the right metrics and approach will do it perfectly.